Insurance Blog

Could Your Business Keep Going After a Temporary Shutdown?

A storm damages your building. A pipe bursts overnight. A small fire forces you to close for repairs.

For many small businesses, even a short shutdown can create serious financial strain. Sales may stop immediately, but rent, payroll, loan payments, utilities, vendor bills and other operating costs may continue.

That’s why it’s important to think ahead. If your business had to close temporarily, how would you keep things moving? And would your insurance be designed to help?

Why a temporary shutdown can be costly

A temporary closure does not have to last long to disrupt your business. Even a few days without normal income could affect your cash flow, employees, customers and recovery.

During a shutdown, you may need to manage:

Lost income from missed sales or canceled jobs
Payroll, rent, loan payments and vendor bills
Spoiled or damaged inventory
Temporary relocation costs
Repairs or replacement equipment

In other words, the doors to your business might be closed, but the bills usually do not stop.

What can cause a business to close temporarily?

Temporary shutdowns can happen for many reasons, including:

Fire or smoke damage
Wind, hail or storm damage
Water damage from a burst pipe
Damage to equipment, tools or a building
Certain utility interruptions related to a covered event
Certain cybersecurity incidents
Damage to a nearby property that limits access to your business

Not every event is covered by every policy. Coverage depends on your policy, endorsements, the cause of loss and the details of your situation.

How business interruption insurance may help

Business interruption insurance, also known as business income insurance, could help replace certain lost income and help cover some ongoing expenses if your business has to close temporarily because of a covered loss.

Many businesses choose to include business interruption coverage as part of their overall risk management strategy. This coverage is often connected to a business owners policy or commercial property policy. In general, the shutdown must be caused by a covered event. For example, if a covered fire damages your building and forces your business to close while repairs are made, business interruption coverage could help with income you lose during that time.

Depending on your policy, business interruption coverage could help with:

Lost business income
Payroll
Rent or lease payments
Certain ongoing operating expenses
Extra expenses needed to continue or resume operations

The right coverage can help give your business room to recover instead of forcing you to absorb the full financial impact on your own.

What business interruption insurance may not cover

Business interruption insurance can be valuable, but it does not cover every situation. Depending on your coverage, it may not cover:

Losses caused by events that are not covered by your policy
Shutdowns that are not connected to covered property damage
Flood or earthquake damage, unless separate coverage applies
Certain utility interruptions, unless covered by endorsement or additional coverage
Income that cannot be documented
Losses beyond the coverage period or policy limits

This is one reason good records matter. Financial statements, tax records, payroll information, sales history and expense documentation can help support a claim.

How to prepare before a shutdown happens

The best time to plan for a temporary shutdown is before your business is facing one.

Identify your most important operations. Think about what you need to keep serving customers, such as your building, equipment, inventory, vehicles, employees, internet access, payment systems or key suppliers.

Back up important records. Keep copies of financial records, customer information, vendor contacts, payroll documents, insurance policies, leases and loan agreements in a secure place.

Create a communication plan. Decide ahead of time who will contact employees, customers, suppliers, your landlord, lenders and your insurance agent.

Document your property and inventory. Photos and videos of equipment, tools, furniture, inventory, signage, technology and improvements can be helpful if you need to file a claim.

Review your insurance regularly. Growth, new employees, added equipment, larger inventory, renovations or new services may affect your insurance needs.

Questions to ask your insurance agent now

Your insurance agent can help you understand how your coverage may respond after a temporary shutdown. Consider asking:

Do I have business interruption or business income coverage?
What types of losses could trigger this coverage?
How long would coverage last after a covered loss?
Are payroll, rent or other operating expenses covered?
Would temporary relocation costs be covered?
What records would I need to provide during a claim?
Have changes in my revenue, payroll, inventory or equipment affected my coverage needs?

These conversations are easier to have before a loss. Waiting until your business is already closed can make the recovery process more stressful.

Plan now so you can recover faster later

A temporary shutdown can happen with little warning. But business owners who understand their risks, keep good records and review their insurance ahead of time may be better prepared to recover.

The right insurance coverage cannot prevent every disruption. But it may help protect your income, cover certain ongoing expenses and give your business a stronger path to reopening.

Talk with your local ERIE agent to review your business insurance and make sure your coverage reflects how your business operates today.

Posted on 10 June 2026 | 5:00 pm

When Water Damage Hit Her New Dental Office, ERIE Helped Her Get Back to Business

Dr. Yooson Kim has spent the last 20 years doing steady, careful work—helping people feel comfortable in the dentist’s chair and building a practice her patients trust. Like many business owners, she also knows that trust matters just as much behind the scenes: with vendors, employees and especially the insurance carrier she chose to help protect what she’s built.

That’s why, after years with a different carrier, Dr. Kim decided to move her commercial insurance to Erie Insurance and update her coverage to better fit her dental practice.

Then, about a year later, the unexpected happened.

“I opened the door on a Monday morning, and water just came rushing out,” Dr. Kim remembers. “It wasn’t a small leak. It was instant chaos.”

A high-pressure water line had failed;^[^1] the damage was immediate.

Dr. Kim’s first thoughts weren’t just about the space—they were about the ripple effects.

“I’m thinking about patients, staff, equipment…everything,” she says. “Every day you’re down, you’re disrupting patient care, you’re jeopardizing staff wages and your own livelihood.”

What stood out next was how quickly Dr. Kim says ERIE stepped in, and how coordinated the response felt—from her agent to the dedicated claims team working with her.

“I didn’t feel like I was chasing anyone,” Dr. Kim says. “ERIE moved fast to help me start getting the situation cleaned up and to get my office back on track.”

Because a dental office isn’t like other spaces, the details mattered. Restoration and repairs needed to be handled quickly. Dr. Kim says there was real collaboration to help keep progress moving.

“The coordination was incredible,” she says. “It was complex, but it never felt out of control. They didn’t just write a check and disappear. They stayed engaged until we were back up and running—and well after.”

Dr. Kim was fortunate to have multiple locations, which helped reduce some of the disruption. Still, her team needed a place to work while the office was restored, and she leaned on temporary space so staff could stay productive.

In about two months, the practice was operational again.

“The repairs were so good it felt like ‘new,’” she says. “Actually—it was new before, and now it’s ‘new-new.’”

No one wants a loss. But when it happens, Dr. Kim believes the real question is simple: “What would we hope somebody would do for us?” For her, the answer looked like urgency, clarity and a team that helped her get back to business—fast.

Find a local Erie Insurance agent to help you protect the business you’re building.

Posted on 9 June 2026 | 5:00 pm

Catastrophe Claims Service: Behind the Scenes with an ERIE Adjuster

An ERIE catastrophe property adjuster shares his experience of helping customers after a CAT event, and how ERIE’s claims service stands out.

Posted on 8 June 2026 | 5:00 pm

Do You Need an Insurance Agent? 15 Signs It Might Be Time

Having a knowledgeable and responsive agent in your corner is critical to helping make sure your insurance keeps up with your unique life situations.

They understand everyone has different insurance needs, which adds value to the human touch they offer. While buying insurance directly online can seem like a convenient way to obtain coverage, life’s realities can make the task more complex. Agents also understand that life’s changes often dictate the coverage we need and they can help walk us through how to get it.

Every Erie Insurance policy comes with a friendly face right in your neighborhood – a local, independent ERIE agent to help you get the coverages you need and never pay more than you should. Read on to learn all the ways having an ERIE agent is beneficial for you.

Why do you need an insurance agent?

Here are some advantages of trusting an agent who understands insurance inside and out:

You get personalized service. It’s hard to beat having a real person who can get to know you personally. Your ERIE agent will discover what matters most to you and ask questions to uncover which policies and options will be the right fit. At ERIE, our agents know how meaningful a little kindness and personalized attention can be.
They can help you make the right decisions. Even if you know what kind of coverage you’re looking for, the best choice might not be obvious to you. Trust an insurance agent to provide you with a range of options and advise you on the benefits and limitations of each policy.
They know your area. Local ERIE agents understand the risks associated with where you live and what your neighbors are experiencing, such as the cost of living in your area and common claims. ‘
Find an agent close to home and have confidence knowing you can always schedule a quick chat if need be. Your local ERIE agent lives where you live and cares about the community. They can answer your questions and make the insurance buying process easier for you.
They know the language. Insurance policies can be tricky to understand. With an insurance pro in your corner, you can be sure you’ll know exactly what you’re getting. Let an insurance agent help you cut through the jargon and tell you how a policy benefits you.
They’ll compare prices for you. ERIE agents understand the differences between each provider’s policies. They can compare rates and coverages to get you the best policy to suit your needs.
They’re looking out for your best interests. One of the biggest perks of having an independent insurance agent is that they don't work for a singular insurance company. This discourages them from giving you options and advice that only benefits one insurance company. They can even help you get savings discounts when bundling certain coverages. Trust your ERIE agent to look out for your best interests and use their knowledge to your advantage.

When is it time to find an agent?

Working with an insurance agent can be beneficial at any point in your life. But it becomes crucial as you take on more responsibilities.

You should report certain changes to your insurance company to update your insurance policies. For the really big things, it can mean changing your coverage.

Here are 15 times when it pays to have an expert agent in your corner:

You’re newly married or divorced. Your spouse or ex-spouse, along with their possessions, are often included in your coverage. Since your priorities shift with a marriage or divorce, an agent can help you make sure those changes are reflected in your policy. This could include updates to your auto, home and life policies.
Your family is growing. When you welcome new members to your family, you might need to adjust your coverage. If anything were to happen to your home, car or possessions, ensure that your entire household is protected with the right policies and coverage options based on your agent’s recommendations.
Your teenager starts driving. When your child grows up and gets behind the wheel, that can add a layer of complexity to your auto policy. Teen drivers are involved in more accidents than any other age group, so ask your ERIE agent how you can get quality coverage without breaking the bank.
Your child is starting college. An agent can help you understand how a child going off to school affects your policies. For example: You could get a break on auto insurance premiums if your child doesn't have a car on campus. And you may consider adding life insurance to cover student loan debt in case of the unexpected.
You’ve bought your first home. As a first-time home buyer, it’s your first time buying homeowners insurance, too. Insuring your new place accounts for the roof and walls, but it also includes your belongings and other protections that make a house a home. Talk to your ERIE agent about the basics of homeowners insurance and learn how you can protect one of life’s biggest investments.
You’re renovating your house. A home renovation can boost the value of your property, meaning your old policy may not cover what your home is worth if you file a claim. As your living space grows and changes, an insurance professional can help you understand how to update your policy and make sure you’re covered properly against a loss.
You’ve moved. With relocation comes an entirely new property to insure. You’re busy enough moving your stuff in and getting settled; rely on your ERIE agent to help you insure your new house.
You bought a new car. Buying a vehicle is cause for a fresh look at your auto insurance, especially if it’s your first new car. A new set of wheels comes with up-to-date features that might make updating your policy a little more complex. It’s best to talk with an agent who can ask the right questions so your ride is well protected.
You started a business. Business insurance is meant to help protect your new venture, even if it’s out of your home. Having an expert on business insurance and other policies that you can call on will prove valuable as your company grows.
You’re considering life insurance. As you get older, you may consider how to best care for your loved ones after you're gone. It may be when you’re comfortable with the life you’ve built or immediately after you start a family. Either way, it’s wise to ask an agent how you can provide everything your family needs if something were to happen to you, your spouse or your partner.
You’ve accepted a new job. Benefits packages vary by company. Consult with your ERIE agent and learn how to get adequate protection to supplement your group life coverage provided by your employer.
You got a raise. When your salary increases, so does your standard of living. And in this case, it might be time to reevaluate your liability coverage and life insurance.
You’re retiring. In retirement, you’re now living off your pension or retirement savings and social security. This stage in life can affect each of your insurance policies, so start having conversations before you retire.
You made a big purchase. Generally, people think of insurance policies as protection for their home, cars and family. However, a large purchase – such as an engagement ring – might need separate coverage from the belongings covered under your homeowners insurance. Depending on the item, your agent can help you find ways to include it in your coverage for pennies on the dollar.
You switched lenders. You may have switched mortgage or auto lenders to save a few bucks. Just make sure you tell your agent. If you don’t, your provider could send claims payments to the wrong lender, making the process complicated and time-consuming.

Get the support you deserve

Nobody should walk through life alone. That’s why every ERIE policy comes with a real person to help guide you through your journey. With each and every milestone, your agent gets to know you and make sure you have the coverage options you need and none that you don’t. Contact your local ERIE agent and get the support you need to protect what matters most to you.

Posted on 4 June 2026 | 5:00 pm

Do I Need Multi-State Car Insurance for Out-of-State Coverage?

In most cases, the answer to this question is “no.” However, some states may have different requirements for showing proof of insurance and different insurance requirements than what your policy provides. In those cases, as a nonresident, your policy will automatically be increased to meet the minimum amount and type of liability coverage required by that state’s law should you be in an accident.

Blog summary:

When visiting other states, your auto insurance will accompany you.
If a car is “garaged,” in one state, it should have an insurance policy in that state regardless if its owner is a primary resident there.
If you move to another state, you will need to get an insurance policy in that state.
You don’t, however, need a new policy if you are temporarily residing in another state.

How does my car insurance work in other states?

The easiest way to think about your insurance is to imagine it as your shadow: wherever you go, it follows you. The home state where you register your car doesn’t change when you travel, so neither does your insurance.

While it is true that states can require different insurance coverage—or in some cases, none—interstate travel won’t affect your coverage if you insure your car in the state where you live.

It is worth noting that your policy automatically adjusts to meet increased requirements that might exist in other states should your coverage fall below the required amount. For example, if you carry Pennsylvania’s minimum of $15,000 per person in bodily injury coverage and you are in an accident in Ohio, where the minimum is $25,000 per person, as of April 1, 2026, your policy will automatically increase to meet that amount.

What if I live in one state but work in another?

Insurance is generally established by where the car resides. So, the car you keep at your home would have a policy in the state where you live. If you have a work car, it would typically be insured in the state where you work and the vehicle is principally garaged. Your agent can provide more details for your specific situation.

What if I own another home out of state?

Again, if you keep your car at your primary home, you would need insurance from that state.

Now, if you keep a car in your primary home state and another at your secondary home in a different state, you will need two policies — one for each vehicle. These policies are completely independent of one another. The policy on one car would not cover the other and vice-versa. A single car cannot be covered by two different policies.

What if I move to a new state?

In the event you relocate your primary residence from one state to another, you will need a new policy.

Remember, insurance is determined based on where the car is. If you bring your car with you when you move, you will be required to register and insure your vehicle in your new home state based on the insurance requirements of that locality.

Once that vehicle is insured in the new state, the same rules apply: your insurance goes wherever you do.

What if I spend winter in another state?

If you prefer spending the winter in the sun instead of the snow, you are subject to what’s known as the “snowbird” rule or exception.

Even though you’re residing somewhere else during the winter, it’s temporary. Your insurer generally recognizes this is a temporary relocation and your policy doesn’t change as a result.

As always, though, keep your insurance agent informed about any long-term changes so they can help keep your policy current.

Do out-of-state college students need a new policy?

If you decide to bring your car to campus, you can remain on your parents’ auto policy so long as you aren’t permanently moving to your college town (full-time students under the age of 24 may be eligible to remain on a parent/guardian policy depending on residency, vehicle ownership/registration, garaging location, and underwriting rules.). However, if you plan on making your college town your new home and have your own vehicle, you will need a new policy under your name. Be sure to consult with your agent

Terms to know

Policy territory: The geographical area where coverage applies, often consisting of the U.S., Puerto Rico and Canada. Contact your ERIE agent to learn more.

State Minimum Requirements: The minimum amount of coverage required in a state. Should an accident occur in a state that has higher minimum requirements and a driver possess coverage amounts lower than what that state requires, their auto policy will automatically adjust to meet the higher coverage requirement.

Garaging Address: The location where a car is primarily kept.

Snowbird Rule: An exception that allows you to keep your auto policy from your primary state residence if you live in another state part time.

The bottom line

Fortunately, traveling out of state doesn’t require you to do anything but make sure your auto policy is up to date. It also never hurts to make sure you’re prepared for anything thrown your way on the open road. To learn more of the precautions you should take, read about what to include in a car emergency kit.

Should you have any questions about your policy, don’t hesitate to contact your ERIE agent. They can provide needed information and explain any gaps that might exist in your coverage.

At ERIE, we’re with you no matter where the road takes you. It comes standard with your policy.

Posted on 11 May 2026 | 5:00 pm